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The Detroit-Windsor Tunnel is one of only two road links between Detroit, USA and Windsor, Canada. The tunnel is one lane in each direction and was built in 1928. As the second busiest border crossing between Canada and the USA, the Detroit-Windsor Tunnel is an integral economic asset for both regional economies.
Macquarie advised the Global Infrastructure Fund (GIF) on the acquisition of Detroit & Canada Tunnel Corporation (DCTC). DCTC owns an economic interest in the US side of the tunnel, including the toll plaza and customs and immigration building, through a long-term operating concession. The concession gives DCTC the right to collect tolls for, among other obligations, operating and maintaining the tunnel. DCTC operates the Canadian side of the tunnel on behalf of the City of Windsor.
Macquarie originated the opportunity for GIF and arranged $US53.5 million of senior debt finance. Macquarie's role in the transaction included due diligence, valuation, managing advisors, arranging acquisition financing and negotiations with the vendor. Macquarie is still involved with the ongoing management of the tunnel.
The transaction marked Macquarie’s first successful toll road deal in North America and the first investment by a Macquarie managed fund on the continent. It also demonstrated the ability of Macquarie to complete all aspects of an extremely complicated transaction in a very short time.
For more information on the Detroit-Windsor Tunnel see our asset description or visit these websites: Global Infrastructure Fund and the Detroit-Windsor Tunnel.
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